For information to directly understand the Individual Voluntary Arrangement (IVA), please visit the website links of Official Receivers Office.
- Simple Guide on Individual Voluntary Arrangement
- Individual Voluntary Arrangement: The Main Processing Stages
According to The Bankruptcy Ordinance, Cap 6 section 20, Individual Voluntary Arrangement (IVA) is an alternative for people who are facing bankruptcy.
The debtor is required to submit a proposal on how he or she will repay his/her creditors. This is done through the Court to get an Interim Order, as well as to get the approval of all creditors, the repayment proposal to all creditors will be binding and legally executed.
IVA is suitable for:
- Debtor who has a stable income and the debt exceeds 10 times of his/her monthly salary
- Debtor whose occupation is too sensitive to apply for bankruptcy
1st Stage |
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1 day |
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within 2 weeks |
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2nd Stage |
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3 months |
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3 1/2 months |
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4 months |
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3rd Stage |
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Upon the Court making an Interim Order, there is a period during which no bankruptcy or other legal proceedings may be taken or continued against the debtor without the permission of the Court. Where the debtor is an undischarged bankrupt, the Interim Order may contain the Courts directions on the conduct of the bankruptcy and the administration of the estate during the period for which the order is in force. |
Based on our very extensive experience of the management of IVA cases, we are flexible when dealing with different situation for our clients. No matter how serious the debts or how complex the background information may be, we are supported by the wealth of knowledge gained from previous successful cases. (Of course, we do only accept the feasible cases as some cases are not suitable for an IVA solution and we would not suggest that our clients waste any money and time.) |
The repayment proposal is a proposal drafted by our experienced nominee to balance the benefits between the debtors and the creditors. This proposal suggests the monthly repayment amount, tenor, interest, as well as the debtors daily expenses; it also lists the applicants assets such as real estate, vehicle, insurance policy and pension fund, etc.. |
IBC staff will use their proven negotiation skills and good relationships with the creditors to formulate the best IVA solution for the applicants and debtors. |